Funny everyone wants to cut dead wood. Too bad that doesn't start with the lame leadership. Instead they are safe when actually they drove the company down. Good luck to those of you who make it through these cuts. Not your fathers company anymore.
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People may be needed if oil prices Coke back, yes. But they can hire new employees who are not dead wood and don't have huge pension obligations each year.
OP is getting his/her wish to some extent for some people. For several years, US payroll technical employees (geoscientists, engineers, and probably some others) have received a "petrotechnical supplement" of 8% of base salary to offset Chevron's relatively low pay structure. Today, I received my 2015 pmp rating and 2016 salary adjustment (I would say pay raise, but I'll try to be accurate). The petrotechnical supplement is being reduced from 8% to 5%, effectively a 3% pay reduction, even if it's not officially part of base salary. If you're lucky enough to get a few pennies of merit increase, then the pay reduction will be a bit less. I predict that the number of jobs this pay cut saves will be exactly zero.
It is going to be much worse. The oil glut is projected to last 10 years. What will the severance packages look like a year or two from now?
Only one mistake, oil will not return in a "year or two". You'd better brace for the long haul. Look at past downturns. History tends to repeat itself. Good luck.
Thanks -1hfc, for agreeing with your own post!!
1hfc-You make a great point. Chevron has dedicated people looking at this board. That is fact.
Why can't they just cut out the dead wood like a normal layoff? Why should we be taking a salary cut for the ungrateful slithering Anti-Chevron deadwood posters like @G4KF2QE-1hfc?
1kyb is right "when you clean out the dead wood, you remove the entire compensation, not just reduce it."
because we are not a socialist or communist country.
PS: Even those (service) companies that have done salary cuts supposedly to keep jobs have eventually laid off people.
Pension calcs are based on highest average earnings, not current. So a pay cut wouldn't make a significant difference...certainly wouldn't reduce by 10%.
@1oym - Your point is valid but two of your three examples are flawed. Life insurance and pension benefits are based on salary, so they would go down as well (assuming the person is not retiring in the next few years).
Salary suggestion wouldn't work. You would still have the dead wood posters slithering around sites like this instead of being ashamed of Gorgon, Wheastone, Bigfoot, GOM, Pro+, Ambu and all the other examples of the supposed 'worthwhile' people.
Big companies rarely roll back salaries. It is demeaning to employees and affects productivity more than a layoff, although of course, a layoffs temporarily affects morale and productivity for a short time.
And then there is the spreadsheet. Benefits costs don't decrease as much as a salary rollback. It still costs the company the same for your medical insurance, life insurance, and pension investments. A 10% salary rollback would reduce costs by a fraction of that 10%.
I don't know of any large company that cuts by decreasing salaries across the board. Companies take advantage of the rough times to weed out the dead wood. Besides, benefits are a large part of the compensation equation and when you clean out the dead wood, you remove the entire compensation, not just reduce it.
40% do nothing now. Fire them and we can talk.
Not to worry , they'll be cutting the dead wood like @G4KF2QE-sdi shortly to make room for the worthwhile productive people!!!
Jeff said we are doing good. Our cost are under control and he is proud. He said we would have minimal downsizing. So buster, speak for yourself not the BU that is performing.
Correct. We are way to overstaffed. The comment was made today, "How many of Chevrons employees have even seen a rig?" They are getting rid of the OE systems runs your buisness to people run the buisness. This is a change in perception. The question was why did all of these projects and new BU fail? Answer? Overprocessed!
The reality is that we are still way overstaffed...
Cutting 200 + jobs in Kern county
Moron.